75D - PH - BUSINESS LICENSE TAX ORDINANCE

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D. In order to assure the effective identification of unlicensed businesses and to enhance the effective collection of the business license taxes, it is appropriate for the City to amend Chapter 21, "The Business License Tax Code", to modify and to add appropriate definitional and administrative provisions for the effective identification, enforcement, collection and enhanced administration of the City's business license tax; and, E. In order to promote immediate and future ease of administration by the City, as well as encourage participation and compliance by qualifying businesses, it is appropriate for the City to amend Chapter 21 to add a voluntary elective alternative flat rate tax assessment for home-based businesses doing business in Santa Ana equivalent to the average gross receipts tax assessment paid by licensed home-based businesses for the most recently tax assessment period. For qualifying unlicensed home-based businesses that are in arrears for prior years' taxes it is appropriate that this alternative tax assessment be adopted retro-active to January 1, 2010. For all other qualifying business who are in arrears for prior years' taxes it is appropriate that penalties and interest be abated to an amount equivalent to the amount of the prior years' taxes owing, as computed or determined based upon the business license tax rates and charges in effect for the most current tax year; and, F. In the course of adopting a Business License Tax Penalty Abatement Procedure and modifying the City's Business License Tax Code, it is not the intent of the city council to either increase the scope of the City's business license tax, or impose a higher business license tax rate, or shift any category of business to a higher tax assessment classification. Any changes in definitional terms are intended to clarify the administration of the City's business license tax with regard to changes in state and/or federal law and modern business practices. SECTION 2: ESTABLISHMENT OF BUSINESS LICENSE TAX PENALTY ABATEMENT PROCEDURE. An ordinance is hereby adopted establishing a Business License Tax Penalty Abatement Procedure. (a) SHORT TITLE. Section 2 of this ordinance shall be known as the "Business License Tax Penalty Abatement Ordinance." (b) DEFINITIONS. Except where the context otherwise requires, the terms used in this ordinance shall have the meaning given to them in Chapter 21 of the Santa Ana Municipal Code. (c) ABATEMENT PROGRAM. A business license tax penalty abatement program is hereby established for persons required to obtain a business license and pay a business license tax under Chapter 21 of the Santa Ana Municipal Code . Page 2 7501-4